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How does the blockchain tool Treasure Box 26 set the relative strength (RSI) technical index of TradingView?

The master brother of Zhu Sanqi, who inherited the last article, survived the stock market crash in 215 and cashed in all the bitcoin highs in 217. He is a legend. Brother shared the secret of "increasing the price and decreasing the price". Just like yesterday, a reader left a message saying, "If the exchange brushes the volume, the trading volume will be falsified." What should I do? Bamboo sanqi was also asked at that time.

Brother shakes the white fan. "Then use the relative strength (RSI) technical index! RSI is an indicator that does not deceive people!

"Blockchain Tools Treasure Box" is aimed at small white users, letting everyone know which tools can be used and in which scenarios.

There are three common ways to make money in the currency circle: speculating in coins, moving bricks and mining. Now it's "coin speculation".

Relative Strength Index (RSI), relative strength index. It is a technical curve made according to the ratio of the number of rising points and the sum of rising and falling points in a specific period, and RSI can reflect whether the market is booming in a specific period. RSI was first applied to futures trading by Welles Wilder, and later it was widely used for short-term investment and short-term spread operation in the stock market.

RSI has been proved to be a feasible indicator for forecasting price changes.

calculation formula

RSI = (average recent increase/(average recent increase+average recent decrease)) x1

calculation steps are as follows:

average recent increase = (2+1+2+4)/ 6 = 1.5

Average value of recent decline = (1+2)/6 = .5

RSI = (1.5/(1.5+.5)) * 1 = 75

RSI analyzes and measures the strength of the buying and selling power of both long and short parties through the fluctuation of the index, thus inferring the future price change direction.

The commonly used trend analysis is as follows:

1. Judging the market according to the RSI value

According to Wilder's point of view, any number over 7 should be regarded as overbought, and any number below 3 should be regarded as oversold.

RSI between 3 and 7 is considered neutral, and RSI of about 5 means "no trend", and the buying and selling power of the market is balanced and in a consolidation period.

however, some traders think that Wilder's overbought/oversold range is too wide and choose to change these ranges. For example, for a market with drastic changes, such as the currency market, it can be stipulated that over 8% is overbought and under 2% is oversold. Namely:

when RSI value >; At 8 o'clock, it shows that the market has been overbought, and the currency price will fall at any time because of the weakening buying power. Generally, the operation is to gradually lighten the position on rallies.

when RSI value <: At 2 o'clock, it shows that the market has been oversold, and the price is not far from the bottom. At any time, the currency price will pick up because of the intervention of buying.

of course, this value is entirely up to the trader.

2. judge the market according to two RSI curves of short-term (e.g. 5th) and long-term (e.g. 1th)

RSI of short-term days >; When the RSI of long-term days is long, it belongs to the bull market;

For example,

When the short-term RSI stops falling below 2 and goes through the long-term RSI, it is technically called "golden cross" and regarded as a "buy signal".

when the short-term RSI is above 8 and enters the overbought area, it shows that the strength of many parties is far greater than that of the empty side. Of course, it also shows that the current market is overheated and may be oversold at any time.

when the RSI <: When the RSI of long-term days, it belongs to the short market;

For example:

The value of RSI below 5 is weak, and the general trend is downward.

if the short-term RSI suddenly turns around and crosses the long-term RSI, it is technically called "death cross" and is regarded as "selling signal".

there are also the differences between prices and RSI, trend confirmation and other uses, which will not be detailed in this article.

The steps are as follows:

Step 1, select the BTCUSD chart we saved yesterday (click to see how to save it at the end of the article and open the chart again.

step 2: add indicators. Open the indicator search RSI and click Add.

RSI will be displayed on the page. Clicking the x next to RSI will remove RSI.

click the triangle symbol on the right to move up to the top of the Vol (volume).

click on the symbol of the double triangle to enlarge the RSI and occupy the whole chart pane. Click again to restore the original position.

step 3: set parameters.

click the gear symbol to the right of the small gray RSI on the panel to set the parameters.

length: the time period used to calculate RSI. 14 days is the default.

we can modify it to 2 days, and click ok.

resources: it is to determine which data in each bar will be used for calculation. The default value is closing.

you can also set the style: color, upper and lower values, background color, and so on. Generally, the default value is enough.

Step 4: Slide the mouse up and down to zoom the chart.

swipe up to zoom out and down to zoom in:

Step 5, create an alarm.

right-click and click < b > create alert to set an alert for the volume. After clicking OK, you can see "Management Alert" on the right side of the panel. The free version only supports one alarm at present, so you need to delete yesterday's alarm and create a new one.

note: the free version supports up to 3 indicators and strategies for each layout. The layout of PRO, PRO Plus or Premium version supports more indicators.

Dear, can you operate it?

I learned to set the relative strength RSI index to judge the market today! Go and try it!

Some readers said that the screenshots given in the previous article did not reflect the laws of "price increase and price decrease"!

Tomorrow, Zhu Sanqi will talk about the common analysis examples of three technical indicators-MA, turnover and RSI!

see you tomorrow!

statement: this article is only the author's independent opinion and does not constitute any investment opinions or suggestions.

Zhu Sanqi put the collection of articles on the website of the Golden Horse Award community in the currency circle.

Click on the link to see the collection of treasure boxes of blockchain tools of Zhusanqi. /category/blockchain/blockchain-tools/

Thank you for reading! Thank you for your praise!